Restructuring and Employee Severance

12 Months Ended

Jun. 30, 2024

Restructuring Charges [Abstract]

Restructuring and Employee Severance

4. Restructuring and Employee Severance

The following table summarizes restructuring and employee severance costs:

(in millions)	2024		2023		2022
Employee-related costs	$	95	$	39	$	35
Facility exit and other costs	80		56		66
Total restructuring and employee severance	$	175	$	95	$	101

Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods. Facility exit and other costs primarily consist of project consulting fees, accelerated depreciation, professional, project management and other service fees to support divestitures, costs associated with vacant facilities and certain other divestiture-related costs.

Restructuring and employee severance costs in fiscal 2024, 2023 and 2022 include costs related to the implementation of certain enterprise-wide cost-savings measures, which include certain initiatives to rationalize our manufacturing operations. The increase in fiscal 2024 restructuring and employee severance are primarily due to estimated severance costs related to these cost-savings measures and costs related to certain projects resulting from the reviews of our strategy, portfolio, capital-allocation framework and operations. During fiscal 2023 and 2022, restructuring and employee severance included costs related to the divestiture of the Cordis business. During fiscal 2022, restructuring also included facility-exit costs related to decreasing our overall office space.

The following table summarizes activity related to liabilities associated with restructuring and employee severance:

(in millions)	Employee- Related Costs		Facility Exit and Other Costs		Total
Balance at June 30, 2022	$	56	$	10	$	66
Additions	35		8		43
Payments and other adjustments	(47)		(16)		(63)
Balance at June 30, 2023	44		2		46
Additions	74		13		87
Payments and other adjustments	(26)		(10)		(36)
Balance at June 30, 2024	$	92	$	5	$	97